Which of the following is MOST likely to be the cost driver for the packaging and shipping activity?
A)Number of orders shipped
B)Number of setups
C)Number of units produced
D)Hours of testing

Question

Quizplus · Accepted Answer

The number of orders shipped is likely to be the cost driver for the packaging and shipping activity because the cost of packaging and shipping is directly related to the number of orders that need to be fulfilled. The more orders that need to be shipped, the more packaging materials and shipping costs will be incurred, increasing the overall cost of the activity. The other options listed are not directly related to the packaging and shipping activity and are therefore less likely to be a cost driver for this specific activity.

Which of the Following Is MOST Likely to Be the Cost